Marketplace facilitators: passenger vehicle rental companies.

Existing law, the Fee Collection Procedures Law, provides for the administration and collection of various fee programs and was originally administered by the State Board of Equalization. In 2017, the California Department of Tax and Fee Administration was established, and existing law transferred many of the tax and fee administration duties, powers, and responsibilities of the board to the department. The Sales and Use Tax Law requires every person desiring to engage in or conduct business as a seller within this state to file with the department an application for a permit for each place of business and requires every retailer selling tangible personal property for storage, use, or other consumption in this state to register with the department. Under existing law, the Marketplace Facilitator Act, a marketplace facilitator, as defined, is considered the seller, retailer, and dealer for each sale facilitated through its marketplace, as defined, for purposes of determining whether that marketplace facilitator is required to register with the department under the Sales and Use Tax Law or a law that imposes a fee administered pursuant to the Fee Collection Procedures Law. The act relieves the marketplace facilitator of liability for the taxes and fees in specified circumstances. This bill would create an exception to the definition of "marketplace facilitator" for a vehicle rental broker, as defined, for the facilitation of a specified vehicle rental.